Judgment 1. Where the parents are the claimants, while choosing the multiplier, whether the age of the claimants or the age of the deceased should be taken into consideration, is the issue raised in this Appeal. 2. Suganthalakshmi, aged 44 and Vijayakumar aged 52, lost their son, Elangovan, aged 21, in an accident that took place on 17.04.2001. The deceased Elangovan was a Technician in the Production Division, employed under Tamil Nadu Petro Products Limited, earning a sum of Rs.8,250/- per month, apart from incentives. 2.1. The parents/petitioners/appellants claimed a sum of Rs.20,00,000/-, as compensation, and the Tribunal awarded the compensation at Rs.8,92,000/-. 2.2. The Tribunal, quantified the compensation, under the following breakup details:- Funeral expenses - Rs.7,000/- Loss of income - Rs.8,58,000/- Loss to estate - Rs.2,000/- Mental agony - Rs.25,000/- --------------- Rs.8,92,000/- --------------- 2.3. Challenging the quantum of compensation as inadequate, the claimants have preferred this appeal. 3. The learned counsel for the appellants submitted that the order of the Tribunal is not correct, as there is omission in not considering the future prospective increase in income and commission of error in not taking the age of the deceased, as the basis to choose the multiplier. 3.1. In order to support the proposition that it is only the age of the deceased, which must be the criteria to fix the multiplier, the decision of the Supreme Court in the case of M.Mansor and another v. United India Insurance Co. Ltd., in Civil Appeal No.8612 of 2013 is relied upon. In the decision, cited supra, relying upon the decision reported in (2012) 11 SCC 738 (Amrit Bhanu Shali and ors v. National Insurance Co. Ltd), it has been held as follows:- “15. ...... The selection of multiplier is based on the age of the deceased and not on the basis of the age of the dependent. There may be a number of dependents of the deceased whose age may be different and, therefore, the age of the dependents has no nexus with the computation of compensation.” 3.2. This decision is squarely applicable to the facts of this case. 4. As per the decision of the Supreme Court in Santhosh Devi. Vs. National Insurance Company 2012 (4) SCALE 559 , the future prospective income ought to have been considered by the Tribunal and the Tribunal committed error in omitting to consider the same. 4.1.
This decision is squarely applicable to the facts of this case. 4. As per the decision of the Supreme Court in Santhosh Devi. Vs. National Insurance Company 2012 (4) SCALE 559 , the future prospective income ought to have been considered by the Tribunal and the Tribunal committed error in omitting to consider the same. 4.1. Therefore, the quantum of compensation has to be reworked and redetermined. 4.2. Last monthly salary of the deceased was Rs.8,250/-. As the deceased was aged 22, 50% of the income should be added, towards future prospective increase in income, i.e., a sum of Rs.4,125/- has to be added. Therefore, the income would be Rs.12,375/-. 4.3. As the deceased was bachelor, deduction of monthly personal expenses should be 50%. Deducting 50%, i.e., Rs.6,187/- contribution to the family would be Rs.6188/-. Adopting the multiplier of 18', the loss of the dependency would be (Rs.6188 x 12 x 18) Rs.13,33,608/-. 10% of the amount to be deducted towards income tax would be Rs.1,33,360/-. Thus, the balance payable would be Rs.12,00,248/-. 4.4. Awarding a sum of Rs.10,000/- each, to P-1 and P-2 towards loss of love and affection and awarding a sum of Rs.5,000/- towards cremation expenses, the total quantification would be Rs.12,25,248/-, rounded off to Rs.12,25,250/-. 5. In the result, the order of the Claims Tribunal is set-aside and this Civil Miscellaneous Appeal is allowed. It is represented that the Insurance Company has already deposited the amount, as awarded by the Tribunal. Therefore, the second respondent/Insurance Company shall pay the enhanced compensation amount, along with interest at 7.5% interest, per annum, from the date of petition till the date of deposit, within a period of eight weeks from the date of receipt of a copy of this judgment. On such deposit, the claimants are permitted to withdraw the same. No costs.